ZIMBABWE’s runaway inflation rate remains unchanged at 848% per year, about 47 times more than the government’s Reserve Bank of Zimbabwe (RBZ) regulated Interbank exchange, according to internationally acclaimed economist Professor Steve Hanke.
A seemingly never-ending economic crisis has massively devalued Zimbabwe’s currency against the much favoured and stable American dollar.
Introduced at par with the US dollar, it trades at US$1: ZW$5,000 on RBZ’s platform and much more on the prevalent black market.
“Once again, Zimbabwe (848%/yr), Venezuela (330%/yr), Argentina (239%/yr), Syria (173%/yr), & Lebanon (134%) come in as the world’s top five inflaters,” said Hanke on Monday.
With civil servants getting salaries mainly in the Zimbabwean dollar, this situation has worsened their already dire situation.
Basic commodities have gone out of reach of many, including Zimbabwe’s over 80% unemployed community.
The rate remained unchanged from October despite the government having put it at 17.8%.
Hanke blamed President Emmerson Mnangagwa’s administration for the state of Zimbabwe’s currency, pointing out corruption and incompetence as the main drivers.
“I measure inflation in Zimbabwe at a stunning 848%/yr, about 47.6 times the phoney official rate. Thanks to Mnangagwa’s economic incompetence and mismanagement, Zimbabwe is in the tank,” he said.